Capital Gold Announces Gold Production Totals for the First Quarter of Operations



    
    Cost of production kept significantly below industry average

    Leach pad expansion begins
    

    NEW YORK, Nov. 1 /CNW/ -- Capital Gold (TSX: CGC; OTC Bulletin Board:  
CGLD) reported today that the Company has produced approximately 10,000 ounces
of gold in the first fiscal quarter of 2007 (ended Oct. 31) from its El
Chanate mine in Sonora, Mexico. Estimates for the cost of production
(including mining, crushing, processing and site G & A) have been
approximately $280 per ounce, which is in line with the 2005 feasibility study
estimates, once inflation is factored in. Production costs were significantly
below the industry wide average of $371 reported for the recent second
calendar quarter of 2007, based on a survey by Goldfields Mineral Service
(GFMS). The Company's latest sale of gold was completed at $785 per ounce.
Production for the first full year of operation is estimated to be 50,000
ounces.
    Capital Gold Chairman Gifford Dieterle said: "We are happy to report
these production numbers for our first quarter of operation. Our fiscal year
began August 1, and October 31 marked the end of our first quarter of
operations. We anticipate that full financial results from this quarter will
be available in mid-December."
    Given the recent 70% increase in the estimate of gold reserves at the El
Chanate mine, Capital Gold's management team has begun efforts to increase
production levels to 60,000 ounces per year in 2008. The expansion of the
leach pads is already underway, as is a study initiated to look at the most
efficient ways to increase the capacity in the carbon recovery system. Capital
Gold's COO, John Brownlie, noted that the ADR plant (adsorption, desorption
and recovery) is currently the limiting factor in increasing production beyond
60,000 ounces per year. "The new expansion, when completed, will increase gold
production capabilities to up to 100,000 ounces per year, and also enable the
production of an equivalent number of silver ounces per year," he said.
(Photos and details of the leach pad expansion, now underway, are shown on the
Company website, http://www.capitalgoldcorp.com.)
    Mr. Brownlie said that the Company recently obtained the additional water
rights necessary for the expansion to 100,000 ounces per year. "The final
remaining piece of the expansion program is adding another secondary crusher.
The original design anticipated the increased throughput, and the company that
installed the crushing circuit will be installing the new crusher. All of
these increased capacity upgrades are anticipated to be completed by the end
of 2008."
    "We have kept our costs as low as possible, and we will be equally as
cost conscious as we move through these increased production levels," Brownlie
said. "We are proud of our record."
    Capital Gold also announced that on Friday, November 9, 2007, they will
officially celebrate the Inauguration of the El Chanate Mine. Many Mexican
government officials will be attending, including the Governor of the State of
Sonora, Jose Eduardo Robinson Bours Castelo, as well as the Secretary of
Mining, Noberto Roque Diaz de Leon, from the Ministry of Economy in Mexico
City. The Company is anticipating that between 150 and 200 people will be
attending the event.
    
    About Capital Gold
    
    Capital Gold Corporation (CGLD:CGC) is a gold production and exploration
company.  Through its Mexican subsidiaries and affiliates, it owns 100% of the
El Chanate gold property in Sonora, Mexico. The proven and probable reserve is
now 832,000 ounces of gold. Further information about Capital Gold and the El
Chanate Gold Mine is available on the Company's website,
http://www.capitalgoldcorp.com.
    Statements in this press release, other than statements of historical
information, are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that
forward-looking statements are inherently uncertain. Actual performance and
results may differ materially from those projected or suggested due to certain
risks and uncertainties, some of which are described below.  Such forward-
looking statements include comments regarding the establishment and estimates
of mineral reserves and non-reserve mineralized material, future increases in
mineral reserves, the recovery of any mineral reserves, grade, processing
rates and capacity, estimated future gold production, potential mine life and
future growth of the company. Factors that could cause actual results to
differ materially include timing of and unexpected events during construction,
expansion and start-up; variations in ore grade, tonnes mined, crushed or
milled; delay or failure to receive board or government approvals; the
availability of adequate water supplies; mining or processing issues, and
fluctuations in gold price and costs.  There can be no assurance that future
developments affecting the Company will be those anticipated by management.
    Any forecasts contained in this press release constitute management's
current estimates, as of the date of this press release, with respect to the
matters covered thereby.  We expect that these estimates will change as new
information is received and that actual results will vary from these
estimates, possibly by material amounts.  While we may elect to update these
estimates at any time, we do not undertake to update any estimate at any
particular time or in response to any particular event.  Investors and others
should not assume that any forecasts in this press release represent
management's estimate as of any date other than the date of this press
release.  Additional information concerning certain risks and uncertainties
that could cause actual, results to differ materially from that projected or
suggested is contained in the Company's filings with the Securities and
Exchange Commission (SEC) over the past 12 months, copies of which are
available from the SEC or may be obtained upon request from the Company.




For further information:

For further information: Jeff Pritchard, VP-Investor Relations of
Capital  Gold Corporation, +1-212-344-2785, Fax: +1-212-344-4537, 
pritchard@capitalgoldcorp.com; or Media Inquiries, Victor Webb or Madlene 
Olson, both of Marston Webb International, +1-212-684-6601, Fax: 
+1-212-725-4709, marwebint@cs.com; or Investor Relations in Canada, Robin 
Cook, Account Manager of CHF Investor Relations, +1-416-868-1079, Fax: 
+1-416-868-6198, robin@chfir.com, all for Capital Gold Web Site:
http://www.capitalgoldcorp.com

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CAPITAL GOLD CORPORATION

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